From Strategy to Execution - Oracle › global › kr › download › ... · Strategy Management Process 원천정보의 전략적 관리/ 분석 지원 Enabling Software (SP / Vendor

Managing YourBusiness at theSpeed of the Market

2002년 1월 25일

From Strategy to ExecutionBusiness Intelligence Imperative

2© Deloitte Consulting

22 Business Intelligence with Strategic EnterpriseBusiness Intelligence with Strategic EnterpriseManagementManagement

11 The Challenge- making better decisionsThe Challenge- making better decisions

33 Business Intelligence & tools Business Intelligence & tools –– evolving capabilities evolving capabilities

44 We can help you get there nowWe can help you get there now

Table of Contents


* Source: Deloitte Consulting Survey on Strategy Process

the highest level management or a specialist strategyteam

most managers don’t enjoy

discrete process that happens once a year or lessfrequently

an academic exercise

Operating budgets are developed separately from thestrategic plan(frequently don’t match the “top down”numbers)

“What we get but don’t want….”

Our clients are telling us about their current strategic process*


Our clients are telling us about their requirements related to theirstrategy process*

Clearer link to Value Creation and Shareholder Value

Optimized around possible scenarios

not a single “predicted” future

Dynamic strategies

constantly evolving and quickly responsive to market changes

Effectively communicated and “lived” by everyone in theorganization

Management processes more closely linked

Strategy

Business planning

Performance Measurement

“What we want but don’t get….”

* Source: Deloitte Consulting Survey on Strategy Process


Conventional Strategy ‘Living’ Strategy

The new model : “Living” Strategy

Annual Continuous/Dynamic

Top Down Enterprise-wide

Academic Strategy Action-Oriented Strategy

Slow & Reactive Quick & Anticipatory

Paper Driven Flows Technology-Enabled Flows

Directed / Painful Empowered/Enjoyable

Intuitive Informed

…to make better, quicker, more dynamic decisions.


Performance Management Challenge

management’s objectives and results are aligned with theshareholders’ objectives and results

(주주가치와 경영 관리 지표 연계)

Shareholders’Scorecard

• Dividends• Capital Gains

= Total Shareholder Return

= ? =

Management’s Scorecard

• Quality• Learning

• Productivity• Finance


Links between strategy, business planning and performancemanagement (전략에서 실행까지의 통합)

Top-down oriented targetsettingRigid resource allocation

Setting direction

Deployingdirection

Managing direction

Corporatestrategy

Businessstrategy

Businessplanning

Performancemanagement

Focused on improvement,not on absolute resultsContinuous process

Vital attributes for a Integrated planning process:


Challenge for Information

Speed of Information

Required speed ofdecisions leads toshorter reportingcycles(신속한 의사결정을위한 보고 주기 단축)

Financial marketsdemand hightransparency and ad-hoc information(투명성/적합성)

Complexity of Information

Many Information sources(internal/external)

High amount of internal information availablethrough distribution of ERP Systems






Table of Contents


Business Intelligence Imperative

Not go blindly forwardEquip ourselves with perspective

“Ignorance is the greatest threat to modern business”

“Business Intelligence 는 이를 달성 하기 위한 right path ”

Make sense of the business(Business 이해)Measure performance and project(성과 측정/관리)Improve relationships with stakeholders(주주 가치/관계개선)Create a profit opportunity(이익 창출 기회 도출)


Toward Business Intelligence Enlightenment

Driving the business

Making sense of the business

Insight asThe business

Optimise Stakeholder Relation ship

New revenue sources

RetentionAnd leverage

Efficiency ConsistencyProfitability

Understanding

Change The business

EnhanceThe business

Align The business

Grasp theBusiness

Source:Gartner Research,18 September 2001


Technical Definition

통합 enterprise software applications suitecommon business information warehouse다양한 원천으로부터의 정보 추출(Collating and filtering)

ERPLegacy systemsInternet

가치 중심 경영을 위한 경영진 및 stakeholder에게 필요한information, knowledge,tools 을 제공

Role-based portals


Business Intelligence

4 Main areas

• Linked to decision process(“Make thebetter decisions,faster”)

• People-oriented and personalized

• Contemporary

Decision support

• Carrying through reporting standards

• Overcome heterogeneity of systemsand processes

• Support cross-functional view

Analytical applications for processes

• Reconcile & align information fromvarious internal sources

• Ensure robustness & reliability

Internal data collection & Validation

• Reconcile & align information fromvarious external sources

• Shareholder & Information provider

External Information exchange


ERP system initially focused onenabling operational processes: nowthey are shifting to enablingmanagement processes as well

The “content” ofstrategy

The “process”of strategy

Competitive Business Intelligence는 SEM(Strategic EnterpriseManagement)기반 하에서 보다 성공적으로 실현 될 수 있다

McKinsey is a traditional strategyfirm: they advise clients on whatchoices they should be making

McKinsey &Company

ERPVendors


Combine strategy content and process into a powerful, highlydifferentiated SEM offering

전략수립 및 실행의Process 수립 및 개선

Strategy ManagementProcess

원천정보의 전략적 관리/분석 지원

Enabling Software (SP/ Vendor Applications)

On-going 전략수립 및 실행

Destination“Dynamic Strategy”

통합된 방법론 및 도구:Competitive Strategy, Value Based Management, Creativity

Stimulation, Scenarios and Option Evaluation, BalancedScorecard

“Best of Breed” Strategy Content


BI with SEM is a significant 2nd Wave opportunity

Many companies are seeking to realize additional strategic benefitsby leveraging their ERP systems through ‘second wave’ investments

Strategic Benefits Sought

customer needs 변화 에신속/정확하게 대처하기 위한개선된 통합 정보의 제공

market conditions 과연동된 신속한 사업 방향 변경관리 능력

조직역량의 최적화를 위한전략적 자원으로서의인적자원에 대한 Skill및Behavior 대한 보다 나은이해

58%

52%

47%

35%

29%

Major Focus Areas

Integration &Process

Information

CustomerResponsiveness /

Flexibility

Cost / Productivity

New ApplicationInfrastructure

Indicates % of companies that mentioned focus area of second wave initiative

Source: Benchmarking Partners, Achieving Return on Investment


External DataInternal Data

(operational/financial)Core Business Processes

Commercial& CapitalMarkets

ERP

SEM이란 전략에서 실행까지의 전사적인 경영 프로세스를 역동적이고,가치중심적으로 (dynamic,Value-based enterprise-wide)지원하는 Solution

Execution

DefineOperations

Plans

DevelopProjects

Appraise &Compensate

ManagePerformance

Performance Monitoring

Communication

StakeholderCommunity

StakeholderCommunity

Strategic ActionPlans

Strategy

PositionReview

Insight

Simulation/ ValueProfiling

Visioning/Option

Scenarios

What is Strategic Enterprise Management(SEM) ?


SEM 의 핵심 :VBM principles

Value Based Management (VBM)Principles

Transaction systems

Data Warehouse knowledgebase

Strategic Enterprise Management

Value-focused “content”

A next generation “plan &manage” process

An integrated set of tools

Strategic Enterprise Management

Value-focused “content”

A next generation “plan &manage” process

An integrated set of tools

Planning world(Strategic)

Transactionworld

(Operational)

BW

COMMERCIAL MARKETCOMMERCIAL MARKETCOMMERCIAL MARKET STRUCTURE & RESOURCESSTRUCTURE & RESOURCESSTRUCTURE & RESOURCES

Strategic PositionStrategic PositionStrategic PositionStrategic Position

Competitive PositionCompetitive PositionCompetitive PositionMarket AttractivenessMarket AttractivenessMarket Attractiveness

Scope & ContextScope & ContextScope & Context

Strategic IssuesStrategic IssuesStrategic Issues

InsightInsight ValueValueCreationCreation

Financial PositionFinancial PositionFinancial Position

GrowthGrowthGrowthEconomic ProfitabilityEconomic ProfitabilityEconomic Profitability

Critical Success Factors & Key Performance Indicators Critical Success Factors & Key Performance Indicators Critical Success Factors & Key Performance Indicators

Performance Monitoring & Incentive CompensationPerformance Monitoring & Incentive CompensationPerformance Monitoring & Incentive Compensation

Projects & ResourcesProjects & ResourcesProjects & Resources

CAPITAL MARKETCAPITAL MARKETCAPITAL MARKET MANAGED PERFORMANCEMANAGED PERFORMANCEMANAGED PERFORMANCE

ChosenChosenStrategyStrategy

Scenarios & OptionsScenarios & OptionsScenarios & Options

CreativityCreativityCreativity

Organizational & Technical ArchitectureOrganizational & Technical ArchitectureOrganizational & Technical Architecture

Standardof

Excellence

Return = 19.0%

Return = 14.9%

Return = 10.6%

Return = 6.4%

Nu

mb

er o

f C

om

pan

ies

Fortune 500Median

0% 10% 20% 30% 40% 50% 60%

50

100

150

200

350

300

250

E

B

C

D

A

EDW / Data Mart / Metadata

Legacy

ORACLE Applications

SAPDB2

Flatfiles


VBM:Key Concepts

Starts with the premise that Total ShareholderReturn (TSR) is the ultimate value measure andthat cash flow drives TSR.

-20Total Shareholder Return (Capital Gains & Dividends)

50

100

150

200

250

300

350

-10 0% 10 20 30 40 50 60

19.0%

14.9%

10.6%

6.4%

Num

ber

of C

om

pan

ies

% % % % % % %%

Fortune 500Median

Understands that the long term interests ofcustomers, shareholders and employeesare inextricably linked.

shareholder value is only created by managingcustomer and people value

ShareholderValue

CustomerValue

EmployeeValue

Is realized through an integratedmanagement process.

Performance-Linked

Compensation

CorporateGoals and Objectives

Corporate Strategy and

Value Profiling

OperationalPerf. & Cust.Measurement

Corporate Structure andFin. Strategy

Bus. Unit Stat. & Resource

Allocation

Is achieved when a systematic journey isundertaken.

Building a Value Infrastructure

Developing VBM Competency

Value Modelingthe business

Developing value-creating strategies

Definingvalue driversand performancemeasures

Aligningcompensationwith valuecreation

Creating thevalue imperative


Building a Value InfrastructureBuilding a Value Infrastructure

Developing VBM CompetencyDeveloping VBM Competency

TheValue

Enterprise

Making Value the MissionMaking Value the Mission

Value ModelingThe Business

Developing ValueCreating Strategies

Create the ValueImperative

DefiningValueDrivers andPerformanceMeasures

AligningCompensationWith ValueCreation

The Value Journey™A Value Transformation Implementation Program


High-level value drivers 와 operating value drivers의 연계를 통한 Kkeyperformance measures도출

Demand growth

Market Share (+1%)

Pricing Strategy

Payment Method

Leased Lines

Advertising

Maintenance

New Installations

Refurbishment

Site selection

Working Capital Mgmt

Value Drivers

Framework Provides Transparency

Value Driver Model Value Impact

Revenue +$100

Expenses +$60

Investment +$30

IncomeStatement

BalanceSheet

Cash FlowStatement

CFROI+0.5%

AssetGrowth+0.2%

FreeCash Flow

-0.3%

TSR; Share Price

+1%


To generate value-focused content, a hierarchy of value-basedperformance measures is needed. (가치 중심 경영의 성과 관리 지표 구축)

Alignment is Critical!

CFROIRe-investment Rate

Life-Cycle Fade

Operational Measures(A Value Scorecard)Sin

gle

Per

iod

• Have we created value for shareholders?

• What is the best strategy?• Will the strategy create value for

shareholders?

• Where are we creating /destroying value?

• Are we on or off plan?

• Where are we on/off plan?• How do we fix it?

TSR

CMV/TBRMul

ti-P

erio

d


재무정보중심과거지향적통제 중심외부보고 중심

재무 및 비재무 정보전략 연계과거 및 미래 지향경영진을 위한 정보

주주가치 창조현금흐름 중점operational drivers 와KPIs 를 financial valuecreation 연계경영진 및 투자자 모두를위한 정보

Traditionalmodel

BalancedScorecard model

Value BasedManagement

model전략 및비재무정보

자본시장 및기업가치 창조

가치 중심 경영 기반하의 성과 지표의 통합

Balanced Scorecard and Value Based Management/Shareholder Valuerepresents a natural evolution from a traditional performancemeasurement approach


How does it improve the business?

• Peoples behaviour andperformance is not fully alignedto the company’s goals andbudgets(비연계성)

• Reporting is largely financial withlimited linkage tostrategy(재무정보 중심)

• Management information islimited to top management.Individuals cannot see how theirperformance is impacting thestrategy(경영진 중심)

As Is

ScorecardScorecard

• Vision, mission and strategy 은comprehensive set of performancemeasures로 구체화

• Performance and actions 과strategy의 연계

• Reporting is balanced reflecting allkey drivers of value such as peopleand customers:Key Value Driver반영한 Reporting

• Behavioural change를 유도하기위한 individual measures,performance management,reward의 명확한 연계

To Be


Value Driver와 Cost driver 의 통합: ABM

Activities Attributes

ProjectsProjectsPlanningPlanning

EngineeringEngineering

Installation/RemovalInstallation/Removal

Warehouse ManagementWarehouse Management

Moves/RearrangeMoves/Rearrange

TradingTrading

OperationsOperations

Training and EducationTraining and Education

Business DevelopmentBusiness Development

TechnologyTechnology

Policy and StrategyPolicy and Strategy

LiaisonLiaison

External AffairsExternal Affairs

PersonnelPersonnel

Market InvestigationsMarket Investigations

CostCost

Fixed/VariableFixed/Variable

TimeTime

DriversDrivers

Quality ImpactQuality Impact

Value AddedValue Added

ImpactImpact

Volume ImpactVolume Impact

Complexity ImpactComplexity Impact

• Strategic Project Prioritisation

• Service Levels

• Change to Tariffs

Activity Based Management

• Functional costs allocated to activities

• Separation of different types of process

• More effective budgeting

• Faster results

• Understanding of project costs

• “What-If” capability for different operationalscenarios, e.g. new product/service.

Benefits=

+Impact

Allowing better long termplanning, Value Creation


• Forward-looking company resource model• 대안 또는 운영계획에 대한 what-if analysis

• 가격 결정을 위한 break-even analysis

Activity-Based

Management

ProductManagement

CustomerMeasurement

PerformanceSupport

StrategicManagement

OperationsManagement

SCM

• supply chainPerformance 측정

• InternalBenchmarking

• Transaction costbenchmarking

• BSC 및 VBM의Input

How does it improve the business?

• Rationalizecustomer portfolio

• Rationalize channelsof distribution

• Modify customerbehavior

• Cost-to-serve 절감

• High cost Businessprocess파악

• SCM Performance분석

• Re-engineering우선순위

• Make or buy의사결정

• Rationalize productportfolio

• Refinemanufacturingstrategy

• Product cost 절감기회 도출


Integrated Planning

Corporatestrategy

Corporate clarity, targets and frames

Businessstrategy

Vision, strategic business goals and KPIs

Businessplanning

Targets, clear responsibilityand accountability

Performancemanagement Shame and glory

Corrective actions


Key Attributes & Objectives

Holistic approach

Top-down

Focused on improved performance

Rigid resource allocation

Continuous process

To make strategy happen

To increase quality of plans

To eliminate planning outside strategic scope

To decrease time spent on number crunching

To ensure clear responsibility andaccountability

Key AttributesKey Attributes

Key objectivesKey objectives


How to develop?

Strategic direction template

Targets

Total Business Return

Cash flow return on investment

Asset growth

Frames

Strategic mode

Capex

Manning

Major Actions/Initiatives:

KPI Target: Up Time

Comments:

KPI and action plan template

Implement "Up Time" measure in all units Upgrade 7 old cracker furnaces to achieve one year of

operation without mechanical cleaning Increase test intervals for equipment 10% Implement statistical process control system (SPCS) in all

units

Action Responsible TimeSGEL

VKVK

03/0006/00

06/0012/00

94.2% in 2000 95.6% in 2002

new measure - no history available93,5

94

94,5

95

95,5

96

1 998 1 999 2 000 2 002

%

Up Time

TargetKPIsStrategic BusinessGoals

Vision

Business planning template

Performance management templateKPIs

KPI # 1 aaaaaaaaa

KPI # 2 sssss ssss

KPI # 3 kjhjh sdhj asdk

High level financials

Revenue #.###.###

Net operating income ##.###

Gross cash flow ###.###

KPI # 10 kjhjh sdhj asdk


Financials are of minor interest

GROSS CASH FLOW ESTIMATE PLAN

NOK million 1999 2000

Gross operating revenue- Operating costs & depreciation, depletion and amortisation= Operating income

+ Depreciation / write down+ Share net non-consol inv. (20-50%), excluding amort. / write

down+ Other cash items, net before tax- Standard calculated taxes (based upon tax rate from

corporate)

= Gross Cash Flow

GROSS CASH INVESTMENTS ESTIMATE PLAN


Trade Receivables+ Inventory

- Accounts payable

= Net operating capital

+ Other non-depreciating assets, net

= Non-depreciating assets

Property, plant & equipment excl. land, net

+ Accumulated depreciation PP&E

+ Gross Plant Inflation Adjustment

+ Other Depreciating Assets, net

= Gross cash investments

FREE CASH FLOW ESTIMATE PLAN


Gross Cash Flow

- Capital Expenditures

- Increase trade receivables

- Increase inventories

+ Increase in accounts payable

+ Other items, net

= Free Cash Flow

Financial statements 는Business Planning의 목적이아니라, 단지 그 결과물일뿐이다

corporate level의 TSR을위한 CFROINo focus on thefinancial statementsin the business plan reviewmeeting between divisionsand corporate


The most significant benefits come from focusing decision-making onimproving those measures that translate into increased shareholder value .

But it is worth the effort -- benefits can be significant.

Ability to translate overall business strategy into operational actionsand measures that will create value

Ability to link decisions across the company

Reduction in time to locate, access and analyze information

Reduced demand on staff to filter, massage, and cleanse data

Reduced Total Cost of Ownership in data extraction,consolidation and distribution due to enterprise view of informationrequirements






Table of Contents


The tools available to support the Enterprise management processhave tended to be stand-alone niche products.


Consolidation

Multi-segment

Scenario Analysis

Maintenance / Security / Admin

Ease of Use

Actual Upload and Comparison

Support for Modelling

Reporting

Analysis

Plann

ing

Tool

s

OLA

P

Tran

sact

ion

Proce

ssin

g

Datab

ase

Solut

ion

Budge

ting

Tool

sSpr

eads

heet

EIS

Good

Poor or notapplicable

Fair

Illustrative only - not intended to be used for system selection. Individual products may deviate from these illustrative evaluations

The only way to obtain a complete set of functions and features hasbeen by combining tools.

Dynam

ic M

odel

ling

Tool

s


But, the major ERP vendors have moved to introduce integratedBusiness Intelligence suite

Decisions

Information

Data

Business ProcessesBusiness Processes

TransactionsTransactions

Management Processes

ERP정보 등을 이용한management

& strategy processes

지원하는 Business IntelligenceTotal Solution을 제공

통합된 ERP 시스템의 구현을 통한거래처리 업무 프로세스 개선


22 Strategic Enterprise Management (SEM) Strategic Enterprise Management (SEM) –– BBroadly roadly DDefinedefined


33 SEM vendors and tools SEM vendors and tools –– evolving capabilities evolving capabilities


Table of Contents


““We will help yourWe will help yourorganization to developorganization to develop

and execute betterand execute betterstrategies, faster thanstrategies, faster than

the pace of your marketthe pace of your market””


We can help you get there now

We use proven methods and tools to align SEM content withshareholder value(검증된 방법론 및 지원도구)

We have successfully implemented SEM capabilities and haveadditional projects underway(성공적인 프로젝트 구현 경험)

We can facilitate either a bottom-up or top-down implementationapproach(Industry/Corporate 의 상황에 맞는 다양한 구현 방법 지원)

We bring a toolset that will reduce your time-to-benefit (구현 기간단축을 위한 검증된 Toolset 보유)


Our toolset will decrease your time-to-benefit.

InformationPrintTM 정보화 요구사항 파악,문서화 및 이의최적화를 지원 Tool

StrategyPrintTM 전략 수립 및 전략적 KPI 선정을 지원하는 방법론및 도구

IndustryPrintTM 산업별 선진 상세 프로세스 제공하여,프로세스성과 측정 및 관련 데이터 요구사항 정의/수집 지원 도구IndustryPrintTM

InformationPrintTM

StrategyPrintTM

Information

Consumers

InformationComponents

Bu

sin

ess

Dim

ensi

on

s

ChosenStrategyChosenStrategy

Projects andResources

Projects andResources

PerformanceMonitoring

PerformanceMonitoringFinancial PositionFinancial Position

Strategic PositionStrategic Position

Capital MarketCapital Market

EconomicProfitabilityEconomic

Profitability GrowthGrowth

Commercial MarketCommercial Market

MarketAttractiveness

MarketAttractiveness

CompetitivePosition

CompetitivePosition

InsightInsight CSFs and KPIsCSFs

and KPIsStrategic

IssuesStrategic

Issues

Scope and Context

Scope and Context

CreativityCreativity

Scenariosand OptionsScenarios

and Options

TimeTime

Create & MaintainCustomer Profile

Capture CustomerAccount Structure

Capture OrderInformation

Perform CreditAnalysis

ManageReferenceInformation

Perform OrderRegistration

Perform ServiceProvisioning -

External & Internal

Install & TestCustomer Equipment

Perform OrderCompletion

Develop SupplyChain Strategy (1)

Develop &Maintain

ProcurementPolicies

Forecast Demand

QualitySuppliers

Establish SupplierArrangements

Manage SupplierRelationships

Manage PurchaseRequisitions &

Orders

Procure NetworkEquipment (2)

ManagePayables

Develop SupplyChain Strategy (2)

Manage Inventory

Receive & StoreGoods

Fulfill Orders

ManageReturns

Manage Material& Asset

Disposition

ManageTransportation

Operations

Manage FacilitiesEquipment &

Labour

Manage AncillaryServices

Perform EventCollection &Validation

Perform Bill Certification& Validation

(Revenue Assurance)

Perform BillComputation

Process Payments

Manage InformationSharing

Support CustomerInquiries

Perform CollectionActivities

Manage AccountsReceivablePortfolio

Manage &Monitor theNetwork

Process TroubleOrder

Assess TroubleLocation

Isolate & RepairNetwork Plant

Isolate & RepairCustomer Premise

Network

PerformOperatorServices

PerformDirectoryServices

Assess Markets &Customers

Develop Products& Service Strategy

Enhance ExistingProducts & Services

Withdraw/MigrateProducts & Services

Develop NewProducts & Services

Manage Product/Service Launch

Develop Marketing& Sales Plans

Manage Products& Services

Manage Pricing& Tariffing

Manage Advertising

ManagePromotions

ForecastDemand

Execute Marketing& Sales Plans

Perform OtherMarketing & Selling

Duties

Develop NetworkStrategy

Plan the Network -New Technologies

& Services

Plan the Network -Capacity

Design & Engineerthe Network

Procure NetworkEquipment (1)

Build theNetwork

Perform OtherNetwork Planning

Procuring &Provisioning Duties

Develop/Enhance/Withdraw Products

& Services

Market & SellProducts

& Services

Plan, Design& Build

the Network

Perform OrderManagement

Perform ServiceProvisioning

Procure Materials& Services

ManageLogistics

Perform Billing& Remittance

Perform ServiceAssurance

Provide Operator& DirectoryServices

Our SEM Diagnostic best practices 및 SEM 구현 이슈의 신속한해결을 지원하는, 실제 구현을 통해 검증된 ToolsetSEM

Diagnostic0

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Holt Value Associates 의사 결정이 주주 가치에 미치는 영향분석 을 위한 Toolset및 자본시장 데이터베이스정보를 제공해alliance partner

Holt ValueAssociates


Holt Value Associates’ methods and tools

A FA Financial Investm entA eltus Investm ent M gm t., Inc.A lex B row n C apitalA llied Investm ent A dvisorsA lliance C apital M gm t. C orp.A m erican C enturyA m erican C entury Investm entA tlantic C apital M gm t.A tlas C apital, L.P.A rden G roup, Inc., TheA uchincloss & Law rence, Inc.B P A m erica, Inc.B TR C apital M anagem ent, Inc.B ahl & G aynor Investm ent C ounselB ank of A m ericaB ay Isle FinancialB oys, A rnold & C om panyC am biar Investm ent Inc.C anyon Partners Inc.C apital R esearch C o.C apital TechnologyC astleR ock PartnersC hase Investm ent C ounsel C orp.C itibankC lifford A ssociatesC olum bia M anagem ent C o.C om posite R esearch & M anagem entC om pu-V al Investm entsC rabbe H uson G roup, Inc.C ram blit & C arney, Inc.C reekside Investm ent M anagem entC restw ood A sset M anagem entD avis Selected A dvisors, L.P.D avis Skaggs Investm ent M gm t.D ean W itter Intercapital Inc.D elaw are Investm ent A dvisors, Inc.Eagle G lobal A dvisorsEaton C orporationEdw ard Jones & C o.

Enright Financial C onsultantsEquinox C apital M anagem entEveans, B ash, M agrino & K lein, Inc.

Farm ers Insurance G roup of C om paniesFirst N ational B ank, SW O hioFlem ing C apital M anagem entFrontier Investm ent M anagem ent C o.Frost N ational B ankG M G /Seneca C apital M anagem entG EM Land C om panyG eneral A ccident Insurance C o.G eneral M otors Inv. M gm t. C orp.G lobeFlex C apitalG oefen & G lossberg, Inc.G reenleaf C apital M anagem ent G ries Financial C orp.G uardian, TheH G K A sset M anagem ent, Inc.H otchkis & W ileyH ow ard H ughes M edical InstituteH ughes Investm ent M anagem ent C o.H utchens Investm ent M anagem entInvestm ent A dvisors, Inc.

Investm ent C ounselors, Inc.JanusJohnson Investm ent C ounsel, Inc.Jurika & V oyles, Inc., Investm ent M gm t.K PM Investm ent M anagem ent, Inc.K alm ar Investm ents, Inc.K anaw ha C apital M anagem entK em pner C apital M anagem ent, Inc.K ennedy C apital M anagem entK unath K arren R inne & A tkin, Inc.Legacy C apital M anagem entLegg M ason C apital M gm t., Inc.Leonard M anagem ent G roupLockheed M artin C orp

Logan C apital M anagem ent, Inc.Luther K ing C apital M gm t.Lutheran C hurch, TheM cM urrey Investm ent A dvisors, Inc.M ercantile TrustM eridian Investm ent C om panyM errill Lynch A sset M anagem entM esirow FinancialM ississippi V alley A dvisorsM ontag M anagem entN ational C ity B ankR ubber & Plastices #1 Securities L.P.N oroian C apital M anagem entN orw est C apital A dvisorsN W Q Investm ent M anagem ent C o.O ppenheim er C apitalO ppenheim erFunds, Inc.O ppenheim er M anagem entPacific A lliance C apitalParnassus Fund, ThePeregrine C apital M anagem entPhilip V . Sw an A ssociatesPioneering M anagem ent C orp.Plaza Investm ent M anagers, Inc.Prudential M utual Fund Investm entPSA FinancialPutnam C om panies, Inc.R C M C apital M anagem ent, LLCR M Investm ent M anagem ent, Inc.R ichard B lum & A ssociatesR oberts, G lore & C o.R obertson Stephens & C o.R oger H . Jensw old & C o., Inc.R oulston & C om pany, Inc.Salom on B rothers A sset M anagem entSand H ill A dvisors, Inc.Schneider C apitalSC I C apital M anagem entScholtz & C om pany

Securities M anagem ent & R esearchSeligm an, J.W . & C o., Inc.Sentinel Trust C o.SM C C apital M anagem entSheffield Investm ent M anagem entShields/A llianceSignet A sset M anagem entSm ith B arney Investm ent A dvisorsSoros Fund M anagem entSovereign A dvisors, Inc.Spears B enzak Salom on & FarrellSpero Sm ith Investm ent A dvisers, Inc.Stafford Trading Standard Pacific C apital LLCStar B ankStarbuck, Tisdale & A ssociatesState of N ew JerseyState Street R esearchStein R ow & FarnhamSterling Ltd.Stonebridge C apital M anagem ent Inc.Stoneleigh Investm ent C ounselingStrong C apital M anagem ent, Inc. Sturdivant & C om pany, Inc.Sum m it Investm ent M anagem entSun Life of C anadaTiger A sset M anagem entT. R ow e PriceTexas C om m erce B ankTR U SC O C apital M anagem entTrust C om pany of the W estU SA A Investm ent M anagem ent C o.V A R etirem ent SystemW .D . H utchinson & A ssociatesW ashington Investm ent A dvisorsW eiss, Peck & G reer Investm entsW ellington M anagem ent C om panyW oodside A sset M anagem ent

Fidelity Investm ents

Invesco C apital M anagem ent.

Your major investors may be using Holt tools and methods!


How do I growprofitably?

How do I allocateresources?

How do Icontinuously

improve?

Deloitte Consulting overall Framework

CompetitiveCompetitiveIntelligenceIntelligence

BusinessBusinessPlanning &Planning & Simulation Simulation

StakeholderStakeholderCommunicationCommunication

PerformancePerformanceManagementManagement

SegmentedSegmentedBusinessBusinessReportingReporting

Link the Link the planningplanning world world

with the with the transactiontransaction

worldworld

Valuation ToolsValuation Tools

StrategyStrategyDevelopmentDevelopment

Functionality Delivered bySEM tools


Iimplementation approach(구현 방법-예시)∞Strategy Formulation

Strategy Execution

Bottom-Up Top-Down

Refine business strategy &identify KSFs

Refine business strategy &identify KSFs

Define new KPIs & implementPerformance measurement

Define new KPIs & implementPerformance measurement

Design & implementcustom DW cubes for KPIs

Design & implementcustom DW cubes for KPIs

Implement standard DWcubes


Refine standardERP reporting facilities

Refine standardERP reporting facilities

Use DW information to reviewbusiness strategy

Use DW information to reviewbusiness strategy

Implement PerformanceMeasurement to deliver

current KPIs

Implement PerformanceMeasurement to deliver

current KPIs

Design & implementcustom DW cubes

Design & implementcustom DW cubes



Implement core ERP modulesImplement core ERP modules

Source & extract data fromexternal sources





The Roadmap to ExcellenceS

tart

Implement systemfor financialconsolidation &managementreporting

Implementsystems forenterpriseplanning,budgeting &performancemeasurement

Implementsystem forimprovedsourcing ofexternalInformation

Implementdynamicbusiness strategysimulation tool

Train managers inVBM

Reengineer strategyformulation, planning &performancemeasurement

Re-definecompensationschemes

SE

M D

iag

no

stic 1 2 3

1 2 3 4

Skills &Process

Infrastructure


구현사례

SaskPower

Barclays Bank

Global Food/Beverage Company

Vodafone UK Financial Institution

Marconi

US West BAT

Norwegian Conglomerate

Microsoft

Ipalco

Telecom Italia

ABN Amro

Other Financial Services

PfizerMajor UK Retailer

Rinascente


Vodafone - slide 1 of 4

Project is to implement a new financial performance managementprocess

The key client requirements are:How to build a framework / infrastructure today for the uncertainty ofthe futureHow to ‘decouple’ the cost of obtaining the necessary information fromthe cost of major system replacementHow to move to a forward looking system - even if it is not 100%accurateFinancial performance to be integrated within and overall distributedmanagement reporting architecture(통합성 제고)How to align the performance measures (KPIs) with the strategy of theorganisation(전략과 연계된 성과 관리)



Client benefitsprofitability & lifetime value 중심의 KPIs정보 제공profitability and an economic model of the businessCustomer and product lifetime value analysisVisibility of “Group” projects and their relationship to the business planSpeed, flexibility, reliability and integrity of informationProduct, project, segment, tariff and customer viewsBenchmark against external measures as far as possible“Reporting :proactive agent of change rather than a matter ofhistorical record”Enhanced and simplified forecasting



Financial Performance Management Project - Phase 1 ReportFinancial Performance Management Project - Phase 1 Report

Profitability Engine

Network Model

ABC Attributes

Life Time Value Model•Products•Segments

Source transactionalsystems

Financial data

NonFinancial

data

Database (RDBMS)

ExtractRoutines

XLSextracts

Reports BSC OLAP

Web-based Executive Information System

Cube

And finally, the KPIs and other reporting information is madeavailable via a web-enabled set of reporting tools

Subscriber Admin

Segmentation

Retail Billing

Wholesale BillingProjects

Supply ChainCRMCall Centre

Network Performance

Pre-pay acct.manager

HR

Finance

ODS


Norwegian conglomerate - slide 1 of 6

Client backgroundA Norwegianconglomerate….

….. with globaloperations



The objectives of the project were to:

현재의 Performance Management model 평가 후,improved model 을 개발 :

Better reflect management’s requirementsImprove business decisionsReduce complexity and improve performance in otherfinance processes

Finance related processes에 대한 획기적인 개선 Plan개발

Transaction ProcessingReportingBudgeting



A Strategic Enterprise Management model was implemented, based onValue Based Management and Balanced Scorecard principles:

Focus everyone on creating value for the group as a wholeClarify responsibilities and hold people accountable for things they cancontrolCorrelate financial performance with the capital market

Focus on CFROI as the primary financial value measure

Value Modeling 을 통한 KPI framework 제공Value creation을 제공하는 controllable operational drivers and KPIs도출

decision making and planning 지원 도구 제공

value creation을 위한 management processes구축Strategy, Capital Allocation, Target Setting & Business Planning,Performance Management



Value creation

CFROI Growth

InvestmentCash Flow

OperatingCosts

RevenueWorkingCapital

AssetProductivity

Drivers & KPIsVolumePriceCustomerRetention%

Drivers & KPIsVariableCapacityIndirectHES

Drivers & KPIsInventory daysA/R daysA/P days

Drivers & KPIsUp timeUtilisationEmployeeTraining

Value modeling

Strategy

Capital A

llocatio

n

Perform

ance

Measure

ment

Target Setting

& Bus. Planning



Key activities in the SEM engagementBusiness planning process에 대한 Detailed designdivisions and business units 에 위한 Business planning templatesIntegrated Planning및 KPI선정을 위한 Value ModelsExtensive training (over 500 managers)Business planning databaseKPI best practice repositoryKPI and action plan databaseHelp-desk service


ABN AMRO - slide 1 of 2

Projectnew costing methodology 구축

Cost Budgeting and Planning & Control Cycle을 개선하기 위한 Data 및 businessarchitecture 구축

The objectives were to:Branch compensation, benchmarking and cost reduction purposes에대한 Model 개발기업의 전략적 목적에 부합하는 Proactive information infrastructure구축

Deliverables:

Activity Based Costing modelsmanagement information 에 대한 Data warehouseIT strategy


ABN AMRO - slide 2 of 2

Client benefits - The integration of aggregate information for decisionmaking retrieved from existing information sources realized thefollowing benefits:

New information capabilities are delivered to the organization (newviews)No duplication of information entering (reduce re-keying)Leverage on existing investments (use what has been built)Time and quality improvements (only one version of the truth)

The whole process has ensured that the company:Can ensure that the performance measures are in line with strategicobjectivesCan plan an incremental approach to the technical delivery of datathrough the global data warehouse


Singapore Telecom – slide 1 of 2

pilot customer and product profitability (CPP) system구축

CPP information을 senior management 제공 목적

Front-end activity-based costingSystem 구축

Network Model(plotting logicalnetwork diagrams andcalculating the cost driver fortraffic-sensitive networkelements): 딜로이트 컨설팅 모델 사용

Data storing을 위한 datawarehouse 구축

client’s OLAP reporting 요구충족을 위해 다수의 multi-dimensional data cubes 구축

profitability, revenue drill-down,cost drill-down, and unitrevenue/cost reports

CPPDatabase

ReportingTools

DataMart

Reports

PC

Network Model

PC

ABC Model

FinancialSystem

Pilot Customer and Product Profitability System


Singapore Telecom - slide 2 of 2

CPP Data Mart

(OracleExpressServer)

NetworkModel

ODBC

OracleExpressAnalyzerFront-end

SNAPI

ABCApps

NT Server

NT Server

WIN’98 PC

WIN’98 PC

WIN’98 PC

OD

BC

ExportTables

FACTTables

Network Model Tables

ABC Tables

Control Tables

CPPDatabase(Oracle 8i)

CP

P L

inks

CPP OLAPTools

Visual BasicFront-end

User

User

#

Data[SAP-FI-SL,Excel files]

Excel Files

ABC Links

WIN’98 PC

NOTE: Reports generationpoints are indicated by #

Use

r

WIN’98 PC

VBNM Data[Excel files]

New ABC Model

VB NetworkModel (VBNM)

CPP Database &Data Mart

OLAP ReportingTools

#


Telecom South Africa Ltd

business issues 및 regulatory reportingobligations충족 목적을 위한 financialinformation system 구축

regulatory reporting requirementssophisticated business unitinformation needs to control andmanage costsaddress network expansion decisionsimprove pricing capabilities

Stand-alone pilot system 구축integrated system design 및 developmentGuideline제공

Conceptual Data Flow Model

Change LeadershipChange Leadership

• Activitybasedcosting

• Networkcosting

• Processmodelling

• Activitybasedcosting

• Networkcosting

• Processmodelling

ExistingExistingDataData

SourcesSources(Billing,(Billing,

Financial,Financial,etc.)etc.)

Data

ware

house

Deci

sion S

upport

Exe

cutiv

e I

nfo

rmatio

n

Financial/Non-Financial


구현 사례를 통한 Key Success Factor

Top management support

Client ownership

Commitment of full-time quality resources from client

Linkage to competitive strategy, especially quality and continuousimprovement programs

Training, education and more training

Start with a scoping and planning stage and then a pilot

Overcome resistance to change

Consensus and clarity of objectives of the project - Define your destination!

Documents

From Strategy to Execution - Oracle › global › kr › download › ... · Strategy Management Process 원천정보의 전략적 관리/ 분석 지원 Enabling Software (SP / Vendor